Ottawa should use its budget to promote equality, green transition

On April 19, the federal government will introduce its much-anticipated budget. Its first priorities are dealing with the pandemic and reviving the economy. But beyond this, its use of a projected budgetary stimulus of $70- to $100-billion should be directed at promoting a more equal and green post-pandemic economy—objectives the government itself embraces. Prime Minister Justin Trudeau has continually insisted that the economy should benefit Canadians more widely, and that economic growth and protection of the environment need to go together, particularly to limit climate change. But the Liberal government has not gone very far in advancing these objectives, and needs now to greatly scale up its efforts. Even pre-pandemic, Canada was very unequal economically. In 2019, according to Statistics Canada, the bottom fifth of the population economically earned only one per cent of the country’s total market income, while the top fifth earned 52 per cent. And, according to the parliamentary budget officer, the bottom 40 per cent own only one per cent of the country’s wealth, while the top fifth own 74 per cent. What’s more, this inequality has grown with time. The bottom 40 per cent have actually lost market income, after inflation, since 1976, when Statistics Canada first reported such figures, while the top fifth gained 37 per cent. And while labour productivity increased 67 per cent over this period, average manufacturing wages have gone up only one per cent, while corporate profits have increased 175 per cent, and top chief executive salaries are now more than 200 times average employees’ incomes. As for countering climate change, the government has undertaken to reduce Canada’s greenhouse gas emissions by 30 per cent by 2030 from their 2005 level. Yet emissions in 2018, the last year for which we have government figures, have gone down only 0.1 per cent since 2005, and have risen since 2016. Clearly the government must do much more if it’s to achieve its 2030 target, let alone its aim of zero net emissions by 2050. The government has attempted to address these challenges, notably in its fall economic statement last November and in its plan to counter climate change, “A Healthy Environment and a Healthy Economy,” released last December. However, the measures in these documents, mostly additional forms of public provision, and especially the monies allocated to these provisions, are generally inadequate. For example, regarding the establishment of pharmacare, the fall economic statement allocates just $500-million per year to cover only costly drugs for rare diseases. And it spreads $7.5-billion over 11 years, until 2027-28, to create childcare spaces, though it’s unclear whether even at the end of this period there will be a fully established national childcare system. More generously, the fall statement devotes $12-billion over seven years to create 28,500 low-cost rental units—not insubstantial, but clearly inadequate relative to the need for such housing across Canada. As for dealing with climate change, many provisions are proposed, though generally inadequately financed. For example, only $2.5-billion is allocated for the next three years for clean power generation, storage, and transmission; $287-million to incentivize zero-emission vehicle purchases; and $2.6-billion over seven years for home refits. And it’s unclear whether these refits are simply to make homes more energy efficient, or additionally to be powered by green electricity. The most promising environmental measure is the increase in the carbon tax to $170 per tonne of carbon dioxide by 2030. However, its effectiveness in altering behaviour will depend on the availability of affordable green alternatives, which need more government support. More negatively, the government’s assumption that oil and gas sector emissions will decrease by 55 megatonnes by 2030, after increasing by 35 megatonnes since 2005, and despite the government projecting a continued rise in oil and gas production, seems highly unrealistic. What is needed to deal with the challenges of inequality and climate change is not only increased government provision, though this is important, but also a reform of the economy that now produces increasing inequality and rising emissions. In particular, companies need to be controlled by a truly equal partnership of their owners and their employees, while the oil and gas sector has to be progressively redirected to produce green energy and the technology for producing this energy. Next Monday’s budget should provide for these necessary changes. Robert Hajaly is a retired teacher of humanities at Dawson College in Montreal. The Hill Times

Ottawa should use its budget to promote equality, green transition

Problems of economic inequality and climate change have not been resolved.

Humanity has reached a critical moment in history

More aggressive short-term climate goals needed in aviation sector, say NDP, climate activists

Canada must push harder to curb greenhouse gas emissions

Humanity has reached a critical moment in history

Canada needs a modern, national health data architecture

To address online harms, Canada must commit to digital media literacy

A cure for multiple sclerosis could be just around the corner

Renewable energy is the way to go, says letter writer

Supporting local broadcasters is critical for our democracy

Government should ‘hold firm’ on compliance with emissions caps and reduction deadlines for oil and gas sector, say environmentalists

Federal fight against climate change stops at the oil patch

Extreme summer heat doesn’t appear to be lighting a fire under the feds on climate action

Public transit and the path to net zero

It’s time to stop bankrolling and exporting climate destruction

News

Get free news updates

Opinion

Submit a guest opinion article

resources

Advertise

subscribe

get help

Ottawa should use its budget to promote equality, green transition

Problems of economic inequality and climate change have not been resolved.

Get The Policy Briefings Newsletter